What's missing from the CBO reform cost estimate
Yesterday's news that the CBO estimated the reform bill will come in under the Democrats' $950 billion over ten years (after revenue increases) was good news for reform advocates.
But the analysis didn't account for the $250 billion plus deficit that's hanging over Medicare like Damocles' sword. As I've reported previously, Medicare physician reimbursement will change - and when it does that deficit will be added to the nation's debt.
That's not to say the CBO erred in their cost projection. They are required to base their calculations on current law, and current law has physician fees slashed by over 20% this fall.
That is NOT going to happen. And therefore the real cost of the Medicare program is going to be at least a quarter billion dollars higher than CBO projects.
Comments
Joe, that $250 billion will be hanging over Medicare whether the health bill passes or not, correct? So I think you should make that clear.
Posted by: Carol Gentry | March 19, 2010 9:51 AM
excellent point. but its the only way they can pass this thing - keep the cost under the magic $1T number.
Posted by: Dan Jacome | March 19, 2010 1:54 PM